Identifier
Created
Classification
Origin
09KAMPALA1395
2009-12-14 12:36:00
SECRET
Embassy Kampala
Cable title:
UGANDA: EDBI DEMARCHE RESPONSE
how-toVZCZCXYZ0573 RR RUEHWEB DE RUEHKM #1395 3481236 ZNY SSSSS ZZH R 141236Z DEC 09 FM AMEMBASSY KAMPALA TO RUEHC/SECSTATE WASHDC 0011 INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHKM/AMEMBASSY KAMPALA
S E C R E T KAMPALA 001395
SIPDIS
DEPT FOR ISN/CPI KEVIN MCGEEHAN
DEPT FOR T, INR, AND NEA
E.O. 12958: DECL: 2019/12/14
TAGS: EFIN ETTC KNNP IR PINR PARM PREL UG
SUBJECT: UGANDA: EDBI DEMARCHE RESPONSE
REF: STATE 120453
CLASSIFIED BY: Aaron Sampson, Pol/Econ Chief, State, Pol/Econ;
REASON: 1.4(B),(D)
S E C R E T KAMPALA 001395
SIPDIS
DEPT FOR ISN/CPI KEVIN MCGEEHAN
DEPT FOR T, INR, AND NEA
E.O. 12958: DECL: 2019/12/14
TAGS: EFIN ETTC KNNP IR PINR PARM PREL UG
SUBJECT: UGANDA: EDBI DEMARCHE RESPONSE
REF: STATE 120453
CLASSIFIED BY: Aaron Sampson, Pol/Econ Chief, State, Pol/Econ;
REASON: 1.4(B),(D)
1. (S) POLOFF delivered reftel demarche to Ministry of Foreign
Affairs' Multilateral Affairs Officer, Isaac Sebulime, on December
1. Sebulime stated that MIDSOC Bank Uganda Ltd. (MIDSOC) is the
start-up venture of a former Deputy Governor of the Bank of Uganda.
Sebulime said that the former Deputy Governor and his business
partner, also a former Bank of Uganda employee, had tried
unsuccessfully to obtain start-up capital from the Organization of
the Islamic Conference (OIC),and are now seeking funding from the
Export Development Bank of Iran (EDBI).
2. (S) Sebulime said the Ministry of Foreign Affairs did not find
EDBI on any sanctions lists and cleared MIDSOC's plan to obtain
what Sebulime described as a loan from EDBI. He said the Bank of
Uganda has yet to approveQIDSOC's request, and that MIDSOC has not
yet received any funds from EDBI. Sebulime added that the "Islamic
banking format" is new to Uganda and that the Bank of Uganda may
have difficulty applying Ugandan banking regulations to MIDSOC's
loan application. POLOFF noted that UNSCR 1803 calls for vigilance
in dealing with all Iranian financial institutions and that both
due to Iran's proliferation activities and because Iran's financial
institutions lack money laundering and terrorism finance controls
Uganda should avoid EDBI financing.
3. (S) On December 9, EconOff raised this issue with the Bank of
Uganda's (BOU) Deputy Director of Financial Markets, Stephen
Kaboyo. Kaboyo was unaware of any license application by MISOC
Bank Uganda Ltd., but said the BOU rigorously screens new entities
and that he will investigate the matter further. We will report
any additional information septel.
LANIER
SIPDIS
DEPT FOR ISN/CPI KEVIN MCGEEHAN
DEPT FOR T, INR, AND NEA
E.O. 12958: DECL: 2019/12/14
TAGS: EFIN ETTC KNNP IR PINR PARM PREL UG
SUBJECT: UGANDA: EDBI DEMARCHE RESPONSE
REF: STATE 120453
CLASSIFIED BY: Aaron Sampson, Pol/Econ Chief, State, Pol/Econ;
REASON: 1.4(B),(D)
1. (S) POLOFF delivered reftel demarche to Ministry of Foreign
Affairs' Multilateral Affairs Officer, Isaac Sebulime, on December
1. Sebulime stated that MIDSOC Bank Uganda Ltd. (MIDSOC) is the
start-up venture of a former Deputy Governor of the Bank of Uganda.
Sebulime said that the former Deputy Governor and his business
partner, also a former Bank of Uganda employee, had tried
unsuccessfully to obtain start-up capital from the Organization of
the Islamic Conference (OIC),and are now seeking funding from the
Export Development Bank of Iran (EDBI).
2. (S) Sebulime said the Ministry of Foreign Affairs did not find
EDBI on any sanctions lists and cleared MIDSOC's plan to obtain
what Sebulime described as a loan from EDBI. He said the Bank of
Uganda has yet to approveQIDSOC's request, and that MIDSOC has not
yet received any funds from EDBI. Sebulime added that the "Islamic
banking format" is new to Uganda and that the Bank of Uganda may
have difficulty applying Ugandan banking regulations to MIDSOC's
loan application. POLOFF noted that UNSCR 1803 calls for vigilance
in dealing with all Iranian financial institutions and that both
due to Iran's proliferation activities and because Iran's financial
institutions lack money laundering and terrorism finance controls
Uganda should avoid EDBI financing.
3. (S) On December 9, EconOff raised this issue with the Bank of
Uganda's (BOU) Deputy Director of Financial Markets, Stephen
Kaboyo. Kaboyo was unaware of any license application by MISOC
Bank Uganda Ltd., but said the BOU rigorously screens new entities
and that he will investigate the matter further. We will report
any additional information septel.
LANIER